In a vertically differentiated monopolistic framework with discrete preferences we examine how protecting the low-quality segment raises the incentive for quality innovation. We show how the monopolist facing competitive imports, might fail to exert its complete monopoly power even if there is...

A rising wage-gap, almost universally, in the last two decades has contradicted the age-old conventional wisdom of asymmetric wage movements across nations when trade is liberalized. We offer an explanation that fits well with the emerging trade pattern between the developed and more advanced...

In health markets, government policies tend to subsidise poorer groups. The purpose of this paper is to analyse the implications of an income-based subsidy policy on the incentives of countries to implement price arbitrage and of firms to provide market access to poorer groups.

This paper examines whether integration of national markets fosters innovation in the technologically inferior country. In a simple set up where a technologically backward home firm and a technologically advanced foreign firm compete in qualities and prices in an integrated market, we find that...

Through the process of globalization, trade dependence and interdependence of the developing countries have increased phenomenally than ever before. The characteristic of this late twentieth-century globalization process has been the new technological revolution that has led to a high rate of...

This paper examines the implications of initial conditions in terms of the levels of tariff protection from which countries liberalize their trade regimes on the wage inequality in trading nations. The discussion is confined to the standard two-country Heckscher-Ohlin-Samuelson model to see...

We consider a policy game between a high-income country hosting a drug innovator and a low-income country hosting a drug imitator. The low-income country chooses whether to enforce an International Patent Regime (strict IPR) or not (weak IPR) and the high-income country chooses whether to allow...

We investigate the export-growth relationship at disaggregate levels - disaggregation both at the country level and at the level of exports - focusing on the diversification and the composition of exports of countries. In a sample of 65 countries for the period 1965-2005 the dynamic panel...

This graduate textbook offers advanced and contemporary readings in international trade and economic development and provides an overview of the fundamental topics in this area. It brings together many of the issues that are considered staple reading for a course in trade and development and it...

We present a policy game where a Rich country has a higher ability than a Poor country to commit to certain elements of health policy such as providing income related price subsidies and allowing parallel imports (PI). When allowing PI is not a choice for the Poor country, the Rich country...